SkyCity opens structured review and pursues two New Zealand online casino licences

SkyCity Entertainment Group has opened a structured review to assess potential acquisition proposals for the entire group while advancing its application rights for two New Zealand online casino licences. The board disclosed the initiative at the annual shareholders' meeting in Auckland on 21 October 2026 and said UBS and Chapman Tripp have been appointed to oversee the process.

Review launched after earlier approaches

The board told shareholders that it received two unsolicited, non-binding proposals earlier in 2026 but declined to proceed because the offers did not properly reflect the group's value and included concerning conditions. The company said it subsequently received no improved offers or new whole-business proposals. Given continuing acquisition interest, the board decided to invite interested parties to participate in a more structured process that will allow selected parties to review relevant information and undertake due diligence before deciding whether to submit formal proposals.

SkyCity emphasised that the structured review does not guarantee a transaction, a formal takeover offer or a change in ownership. Any proposal that emerges will be assessed against the company's existing strategy and the interests of shareholders. The board has not set a deadline for concluding the review.

Advisers and governance for the group-wide process

UBS has been appointed as SkyCity's investment banking adviser and Chapman Tripp as legal adviser for the group-wide review. The board also established a Structured Review sub-committee to guide the process over the coming months and to provide governance oversight as discussions with interested parties proceed.

The advisers' remit includes supporting engagement with interested parties and helping the company evaluate potential transactions and other strategic opportunities. The company noted the initiative is exploratory and that the ownership structure of SkyCity remains unchanged until a proposal acceptable to the board is presented and approved.

Separate Adelaide sale process and regulatory matters

SkyCity has commenced a separate formal sale process for its Adelaide casino business, a process it confirmed was underway in October 2026 after earlier signalling a strategic review of the asset in August 2026. UBS is also leading the Adelaide sale process and will seek proposals from interested parties.

The Adelaide sale process is being run independently of the group-wide review. Any sale of the Adelaide business would represent a decision about an individual operation rather than a whole-company transaction.

The Adelaide business remains subject to outstanding regulatory matters in South Australia. In June 2026, SkyCity and its Adelaide subsidiary entered into a non-binding heads of agreement with the state's regulatory authorities addressing matters from an independent review; that proposed agreement included an A$21 million fine plus governance, compliance and operational commitments. SkyCity said it was progressing discussions towards a binding agreement. The company has not confirmed that the Adelaide sale will be completed and said any transaction will depend on offers received and subsequent decisions by the relevant parties.

Online casino licence progress in New Zealand

On 13 October 2026, SkyCity confirmed it had successfully participated in the auction for the right to apply for two online casino gambling licences under the Online Casino Gambling Act 2026. The auction result grants SkyCity the right to proceed to the application stage but does not itself confer operating licences. Each licence carries a fee of NZ$15 million excluding GST, giving a combined licence cost of NZ$30 million for the two rights.

SkyCity chose to pursue two licences rather than the permitted maximum of three, citing capital allocation priorities and an approach focused on risk-adjusted returns. If approved, the company expects to operate two of the 15 brands that the regulatory framework permits.

Board chair Julian Cook estimated the New Zealand market could exceed NZ$1 billion in annual value, and chief executive Jason Walbridge said he was confident in SkyCity's ability to compete. Regulators have approved Gaming Laboratories International (GLI) to provide independent testing services for the new market while technical requirements for launch are finalised. SkyCity expects the regulated market to open in the second half of FY27 but said the company's own launch timing remains uncertain pending regulatory approvals. The company also said it will monitor advertising activity closely once the market becomes operational, because promotional spend and competition will affect customer acquisition costs and returns.

(See the regulator's upcoming technical work on regulation for more on testing and launch requirements.)

Financial context and cost plans

SkyCity reported underlying revenue of NZ$822.7 million for the year ended 30 June 2026, broadly unchanged year-on-year and down 0.3%. Gaming revenue fell by 5.9%. Underlying earnings before interest, taxes, depreciation and amortisation (EBITDA) declined 22.3% to NZ$181.6 million, a drop the company attributed to subdued trading conditions, expenditure linked to compliance improvements and operational changes, and the introduction of carded play across its New Zealand casinos.

Trading in the first quarter of FY27 was consistent with the final quarter of FY26, SkyCity said in its October update, and consumer conditions in New Zealand and Australia remained subdued, limiting near-term visibility.

To address performance, SkyCity is targeting NZ$30 million in cost savings in FY27, increasing to NZ$70 million in FY28. The company expects capital expenditure to be around the midpoint of its previously stated NZ$80 million to NZ$100 million range. The NZ$30 million licence-rights cost is an additional capital commitment. SkyCity did not declare a final dividend for FY26 and said the board aims to resume dividend payments in FY28 once capital management and operating objectives have been achieved.

What shareholders should watch next

Key developments for shareholders and prospective investors will be whether credible acquisition proposals emerge from the structured review, how the Adelaide sale process progresses, whether the applications for the two New Zealand online licences receive regulatory approval, and how quickly the cost-savings programme delivers the targeted benefits. The company has not issued formal guidance for FY27 because the timing of its online market entry and wider economic conditions remain uncertain.

For ongoing announcements, SkyCity will continue to issue updates through its corporate channels and market disclosures as the structured review and the Adelaide sale process proceed. The group reiterated that no single initiative guarantees a particular outcome for ownership or returns.